On the day the Yankees avoided the arbitration process by inking Andy Pettitte, the defending World Champions found themselves staring at differences of $1.8 million and $1.25 million with shortstop Derek Jeter and closer Mariano Rivera.

Before Pettitte had a chance to file his arbitration request, he agreed to a $5.95 million contract. That represents a $2.2 million raise for the winningest pitcher (55 victories) in the AL across the past three years. Pettitte was 16-11 with a 4.24 ERA last season.

As for Jeter, a budding superstar, and Rivera, one of the game’s premier closers, the Yankees and the players have work to do in order to avoid the cases going the distances. Hearings are slated for the first three weeks of next month.

Jeter, who finished fifth in the AL batting race with a .324 average and led the league in runs scored with 127 while being paid $750,000 filed a $5 million request and the Yankees countered at $3.2 million. Rivera, who converted 36 of 41 saves and going 3-0 with a 1.91 ERA, while earning $750,000 is looking for $4.25 million. The Yankees filed at $3 million.

In both instances, industry experts indicated the players requests were a little high. If the Yankees meet Jeter and Rivera halfway, Jeter will be paid $4.1 million and Rivera will make $3.625 million.

As for the Mets, their biggest differences with the five players who filed requests yesterday were with their double play combination of Edgardo Alfonzo and Rey Ordonez.

Alfonzo, who is moving from third to second to make room for Robin Ventura, filed at $3.85 million and the Mets came in at $2.5 million. That’s a difference of $1.35 million. Ordonez filed at $2.275 and the Mets filed at $1.25 million for a gap of $1.025.

Armando Benitez requested $2.40 million and the Mets countered with $1.575 million, a difference of $825,000. Turk Wendell and the Mets are $525,000 apart after Wendell asked for $1.575 million and the club countered with $1.05 million. Finally, pitcher Jason Isringhausen, who missed all of last year with arm problems, requested $450,000 to the Mets’ $300,000.

Yankees GM Brian Cashman refused to get into the nuts and bolts of the situations with Jeter and Rivera, but was pleased that Pettitte was in the fold.

“Since we are still in negotiations, I am not going to comment on their numbers or our numbers,” Cashman said. “The way I am looking at it is that we have entered Phase II. Phase I was filing and Phase III would be a hearing. I hope we can find a comfort level. If not, we will have to deal with a hearing situation. But we have a lot of time before that.”

For Pettitte, it was the second straight year he avoided an arbitration hearing by signing a one-year deal. In the early days of last spring training the 26-year-old lefty inked a $3.75 million contract.

“Everybody is happy with the deal,” Alan Hendricks, Pettitte’s agent said. “Once we got on the same page, (negotiations) went quickly.”

Asked about the possibility of Pettitte agreeing to a multi-year pact, Hendricks didn’t believe it could happen soon, but didn’t rule it out.

“Not at the present time,” Hendricks said. “But you never know when it may happen.”

What happens with Jeter and the Yankees will be watched closely by other organizations as well as Yankee fans who grew very tired of hearing about Bernie Williams’ arbitration tales the previous three years.

All indications are that the club is willing, for the first time ever, to give an arbitration-eligible player a multi-year deal. However, the limited talks between agent Casey Close and the front office haven’t laid the foundation for such a deal.

And with the upcoming season being Jeter’s fourth, he may not want to get involved in a multi-year deal since he will be two years away from free agency after this season.